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Taiwan makers producing WiMAX products below economy of scale  


Irene Chen, Taipei; Steve Shen, DIGITIMES [Tuesday 22 May 2007]

Although many Taiwan network-equipment makers have begun volume production of WiMAX devices, orders received by the makers so far are not sufficient enough for them achieve economy of scale, according to market sources.

Most makers are now delivering WiMAX products at a rate of several thousand to ten thousand units a month, which is far below an economy of scale of 100,000 units per month, the sources indicated.

Gemtek Technology, one of the pioneers in WiMAX production, began to ship fixed WiMAX devices at a rate of 10,000 units per month in the fourth quarter of 2006. However, the company's shipments of WiMAX devices haven't got a boost since the beginning of this year, the sources stated.

Zyxel Communications is more positive about the outlook for WiMAX products since the company is expected to start shipping WiMAX CPE (consumer premise equipment) to US-based Sprint Nextel in the second half of this year. Even so, the company estimated that WiMAX products are expected to generate revenues of just NT$450-750 million (US$13.5-22.5 million), or 3-5% of its total revenues, in 2007.

Accton Wireless Broadband (AWB), a joint venture between Accton Technology and Israel-based Alvarion, may be able to see its shipments of WiMAX products increase substantially in the second half due to incoming orders from Alvarion, the sources noted.





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